Franklin Electric Co (FELE) AI Stock Analysis

• Market Cap: $4.22B
• Dividend Yield: 1.06%
• Average Volume (3M): 228.34K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.90
• Revenue Growth: 5.06%
• EPS Growth: -22.73%
• Country: US
• Employees: 6,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.30
• Shares Outstanding: 44,510,380
• 10 Day Avg. Volume: 320,851
• 30 Day Avg. Volume: 228,344
• PEG Ratio: -4.14
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 2.21
• P/FCF Ratio: 20.36
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 5.95
• Enterprise Value/Ebitda: 17.36
• 1Y Price Target: $112.00
• Price Target Upside: 18.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $105.00 ▲(10.79% Upside)

Franklin Electric Co's overall stock score is driven by solid financial performance and positive earnings call insights, highlighting strong sales growth and improved margins. However, technical indicators suggest a neutral outlook, and the valuation appears stretched with a high P/E ratio. The company faces challenges in maintaining profitability and cash generation, which impacts the overall score.

Franklin Electric Co Business Overview & Revenue Model

Company Description

Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates through three segments: Water Systems, Fueling Systems, and Distribution. The Water Systems segment offers submersible motors, pumps, drives, electronic controls, water treatment systems, monitoring devices, and related parts and equipment. Its motors and pumps are used principally for pumping clean water and wastewater in various residential, agricultural, municipal, and industrial applications; and manufactures electronic drives and controls that are used in motors for controlling functionality, as well as provides protection from various hazards, such as electrical surges, over-heating, and dry wells or tanks. The Fueling Systems segment provides pumps, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in fueling system applications. This segment serves other energy markets, such as power reliability systems, as well as includes electronic devices for online monitoring of the power utility, hydroelectric, and telecommunication and data center infrastructure. The Distribution segment sells to and provides presale support and specifications to the installing contractors. It sells products produced by the Water Systems segment. The company sells its products to wholesale and retail distributors, specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies through its employee sales force and independent manufacturing representatives. Franklin Electric Co., Inc. was founded in 1944 and is headquartered in Fort Wayne, Indiana.

How the Company Makes Money

Franklin Electric generates revenue through the sale of its products and services across its two primary segments. The Water Systems segment is a significant source of income, driven by the demand for water management solutions in residential, commercial, and agricultural markets. Key revenue streams include the sales of submersible pumps, above-ground pumps, and related accessories. The Fueling Systems segment contributes to the company's revenue through the sale of equipment and systems for fueling stations, benefiting from partnerships with major oil companies and retailers. In addition to product sales, Franklin Electric also earns revenue through service contracts and maintenance agreements, further enhancing its earnings. The company's strong market presence and focus on innovation, along with strategic acquisitions, also play a crucial role in its financial performance.

Franklin Electric Co Financial Statement Overview

Summary

Franklin Electric Co demonstrates solid financial health with stable revenue growth and effective cost management. The balance sheet reflects a strong equity position and conservative leverage. However, declining profit margins and free cash flow growth suggest potential challenges in maintaining profitability and cash generation. Overall, the company is well-positioned but should focus on improving operational efficiency and cash flow management.

Income Statement

Franklin Electric Co has shown consistent revenue growth over the years, with a TTM revenue growth rate of 2.44%. The gross profit margin remains stable at around 35%, indicating effective cost management. However, the net profit margin has decreased to 6.71% in the TTM, down from 8.89% in 2024, suggesting increased expenses or lower efficiency. The EBIT and EBITDA margins have also declined, indicating potential challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is low at 0.20, reflecting a conservative leverage strategy. The return on equity (ROE) has decreased to 10.98% in the TTM from 14.19% in 2024, which may indicate reduced profitability or efficiency in using equity. The equity ratio remains strong, suggesting a solid financial position with a good proportion of equity financing.

Cash Flow

Operating cash flow remains robust, with a TTM operating cash flow to net income ratio of 0.61. However, free cash flow has declined by 7.05% in the TTM, which could impact future investments or debt repayments. The free cash flow to net income ratio is strong at 0.83, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.11B	2.02B	2.07B	2.04B	1.66B	1.25B
Gross Profit	748.67M	717.28M	697.01M	691.43M	576.09M	433.14M
EBITDA	256.69M	294.24M	306.27M	297.13M	239.47M	164.81M
Net Income	141.50M	180.31M	193.27M	187.33M	153.86M	100.46M
Balance Sheet
Total Assets	2.00B	1.82B	1.73B	1.69B	1.58B	1.27B
Cash, Cash Equivalents and Short-Term Investments	102.93M	220.54M	84.96M	45.79M	40.54M	130.79M
Total Debt	270.72M	191.62M	156.28M	264.84M	236.77M	126.47M
Total Liabilities	675.97M	550.77M	517.83M	623.40M	626.54M	422.36M
Stockholders Equity	1.32B	1.27B	1.21B	1.07B	946.48M	847.83M
Cash Flow
Free Cash Flow	202.35M	219.67M	274.30M	59.77M	99.65M	189.00M
Operating Cash Flow	244.95M	261.35M	315.71M	101.67M	129.76M	211.85M
Investing Cash Flow	-153.44M	-45.63M	-74.29M	-43.07M	-264.81M	-78.81M
Financing Cash Flow	-86.24M	-74.07M	-192.19M	-48.47M	50.89M	-66.58M

Franklin Electric Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 94.77
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FELE, the sentiment is Negative. The current price of 94.77 is below the 20-day moving average (MA) of 95.87, below the 50-day MA of 96.06, and above the 200-day MA of 93.70, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 40.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FELE.

Franklin Electric Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTS	―	$9.09B	29.32	17.75%	0.70%	2.96%	12.62%
GRC	―	$1.18B	23.52	13.01%	1.59%	3.19%	31.51%
MWA	―	$4.01B	27.10	17.33%	1.03%	10.19%	20.71%
FELE	―	$4.22B	30.95	10.89%	1.06%	5.06%	-22.73%
RRX	―	$9.35B	36.44	3.89%	0.99%	-4.99%	22.16%
MIR	―	$7.45B	249.32	1.58%	―	7.81%	―
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Franklin Electric Co Corporate Events

Franklin Electric Reports Strong Q3 Sales Growth

The recent earnings call for Franklin Electric revealed a generally positive sentiment, underscored by robust sales growth and improved margins. The company successfully integrated acquisitions and made strategic investments in capacity and innovation. However, challenges such as a decline in Energy Systems margins, foreign exchange impacts, and the termination of the U.S. pension plan were noted as affecting overall performance.

Franklin Electric Reports Strong Q3 2025 Growth

Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy, serving a diverse range of applications including residential, commercial, agricultural, industrial, municipal, and fueling sectors.

Franklin Electric Releases Q3 2025 Presentation Materials

On October 28, 2025, Franklin Electric Co., Inc. released its quarterly presentation materials for Q3 2025 on its website. These materials are intended for use in the company’s upcoming earnings call, providing insights into its financial performance and strategic direction.

The most recent analyst rating on (FELE) stock is a Buy with a $107.00 price target. To see the full list of analyst forecasts on Franklin Electric Co stock, see the FELE Stock Forecast page.

Franklin Electric Co Issues $125M in Senior Notes

On September 26, 2025, Franklin Electric Co. issued $125 million in Senior Notes due in 2032 under Private Shelf Agreements to refinance existing debt and finance working capital. This strategic financial move is expected to strengthen the company’s operational flexibility and market positioning.

The most recent analyst rating on (FELE) stock is a Buy with a $108.00 price target. To see the full list of analyst forecasts on Franklin Electric Co stock, see the FELE Stock Forecast page.